I would expect marketing expense to go in tandem with revenue for at least next few Qs and company operating at breakeven because it's 100% focused on growth (and FWIW I think it's the right strategy right now). The goal is to scale up as fast as is possible without dilution/overleveraging. Being asset-light is huge + in this case.
BTw They hinted on a call that 20% EBITDA margin could be a normalized number if they stop investing hard for growth.
No, I agree. I think it is the right move and if you watched the call they are doing a great job with launch and awareness marketing. If you were around during the PureKanna days, it's hard not to have some unvoluntary twitches seeing the spend. I was encouraged watching the call after the review was posted and hearing all the right things, including grow profitably. If they can be break even and cash flow neutral or positive, full steam ahead.
I would expect marketing expense to go in tandem with revenue for at least next few Qs and company operating at breakeven because it's 100% focused on growth (and FWIW I think it's the right strategy right now). The goal is to scale up as fast as is possible without dilution/overleveraging. Being asset-light is huge + in this case.
BTw They hinted on a call that 20% EBITDA margin could be a normalized number if they stop investing hard for growth.
No, I agree. I think it is the right move and if you watched the call they are doing a great job with launch and awareness marketing. If you were around during the PureKanna days, it's hard not to have some unvoluntary twitches seeing the spend. I was encouraged watching the call after the review was posted and hearing all the right things, including grow profitably. If they can be break even and cash flow neutral or positive, full steam ahead.
Thanks! Great read and intriguing company.
" and $1.3M of other short term assets"
What is included under this?
I couldn't find these numbers in the balance sheet. Would be happy to learn.
So SBBC you like more than HBFG? Why?